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I am neither a lawyer, accountant, nor a certified financial planner. If any ideas seem interesting to you here, please discuss them with your professionally licensed advisor before acting upon them. Otherwise, use them at your own risk.

Thursday, January 11, 2007

fidelity or 401kbrokers for our individual 401ks?

I actually decided in the opposite direction: against going with 401kbrokers and instead going with Fidelity.

Although 401kbrokers does allow borrowing against a 401k account, I have a separate cash reserve, so that is not a significant requirement for me.

What is interesting is that I can invest in the various fidelity index funds, some spartan, mutual funds have expense ratios as lows as 0.08%. That sure beats whatever 401kbrokers offers, even if you can use Vanguard mutual funds - after all, they tack on 0.25% admnistrative fee.

Somehow I have a visceral dislike for any kind of aum based admninisrative fee.

Also, there's less institutional risk - Fidelity has been around alot longer than 401kbrokers.

moom,the more the better - maybe confusing for some, but more flexibility for all!It's only an effective alternative if you have sufficient income from your side business to take advantage of the deductions.regards, m